Hi there
Asking this on behalf of my brother. He has recently purchased a 50 year old house in Sth Gippsland, about 180 Km from Melbourne, for 210000. Prior to leasing it out he has replaced a 15 year old electric hot water service with a gas hot water service, an electric kitchen stove with a gas unit and replaced oil heater with a gas unit. And minor electrical wiring and new powerpoints. In addition he has repainted some interior rooms, replaced some doors and built an external fence.
He has had a leaking tiled roof repaired and now discovered that the roof will need replacing in a year or 2. The capacity of the electrical supply to the house is also inadequate and needs upgrading.
Because he did replacements above and maintenance in preparation for leasing can he claim any part of the costs. He hired an electrician and gas fitter, would their labour costs be added onto the cost of the appliances as installation and then become part of the cost base for depreciation of hot water service, stove, and heater?
He intends to rent out the house for 3-5 years and then move into it as his PPOR when he will gut interior, replace kitchen and bathroom , turn old bedroom into an ensuite, and build large double garage.
Is there likely to be enough depreciaton claims/write off to justfy the cost in getting a depreciaition schedule?
Thanks for any replies
Kevin
Asking this on behalf of my brother. He has recently purchased a 50 year old house in Sth Gippsland, about 180 Km from Melbourne, for 210000. Prior to leasing it out he has replaced a 15 year old electric hot water service with a gas hot water service, an electric kitchen stove with a gas unit and replaced oil heater with a gas unit. And minor electrical wiring and new powerpoints. In addition he has repainted some interior rooms, replaced some doors and built an external fence.
He has had a leaking tiled roof repaired and now discovered that the roof will need replacing in a year or 2. The capacity of the electrical supply to the house is also inadequate and needs upgrading.
Because he did replacements above and maintenance in preparation for leasing can he claim any part of the costs. He hired an electrician and gas fitter, would their labour costs be added onto the cost of the appliances as installation and then become part of the cost base for depreciation of hot water service, stove, and heater?
He intends to rent out the house for 3-5 years and then move into it as his PPOR when he will gut interior, replace kitchen and bathroom , turn old bedroom into an ensuite, and build large double garage.
Is there likely to be enough depreciaton claims/write off to justfy the cost in getting a depreciaition schedule?
Thanks for any replies
Kevin
